• June 3, 2008

FedEx Corporation says it will change the name of FedEx Kinko's, provider of document solutions and business services, to FedEx Office.

Along with the strategic decision to minimize the use of the Kinko's trade name, FedEx said it will record a charge of approximately $891 million ($696 million, net of tax, or $2.22 per diluted share) in its fiscal fourth quarter, which ended May 31. This charge relates predominately to one-time, non-cash impairment charges associated with the decision about the use of the Kinko's trade name and goodwill resulting from the Kinko's acquisition.

The FedEx Office name better describes the wide range of services available at its retail centers and takes full advantage of the FedEx brand - long recognized for excellent customer service, quality and reliability, the company says.

The centers will be rebranded during the next several years. The goodwill impairment charge reflects a decline in the current fair value of the FedEx Office unit in light of current economic conditions, the unit's recent and forecasted performance and the decision to reduce the rate of store expansion.--Nina M. Lentini